tv Bloomberg Best Bloomberg September 9, 2017 12:00pm-1:00pm EDT
♪ matt: coming up on "bloomberg best," the stories that shaped the week in business around the world. things get testy after north korea's latest nuclear trial. another fed seat opens up as stanley fischer is stepping down. >> by february, you could see five new people on the fed. matt: the ecb leaves stimulus settings unchanged. >> the euro is rising despite the ecb. matt: president trump gets rid of daca. and delays a tool on the debt ceiling. a dual on the debt ceiling. >> beware of december. when you are doing your christmas shopping, we could be in another crisis. matt: their recovery from harvey begins as irma barrels towards the u.s. mainland.
>> i would expect there to be some labor inflationary of fact. >> we don't have any choice. we have got to buy those houses. >> we are going to have a ton of money coming here very soon directed at rebuild efforts. matt: plus, the week's top interviews put pandemonium into perspective. >> the market is beginning to have second thoughts. >> there is anxiety. there should anxiety. >> we are going to speak up no matter who is in charge. matt: it is all straight ahead on "bloomberg best." ♪ matt: hello, and welcome. i am matt miller. this is "bloomberg best," your weekly review of the most important business news, analysis from around the world. the week began on what has become a familiar note on reports of a north korean
nuclear test putting the rest of the world on edge. ♪ >> geopolitical tensions, at their highest since the cuban missile crisis, north korea says it has fitted a nuclear weapon to an icbm. washington has promised an overwhelming response to any attack while beijing and moscow are calling for talks. >> the u.s. and south korea, currently trying to analyze the details of the newest nuclear test, the strongest we have seen since 2006 from pyongyang. financial analysts are talking down the markets when they should be trying to calm investors' nerves. they are saying this could have some type of effect negatively on the growth prospects in south korea. >> this could be seen as a slap in the face for north korea's main ally, china, and the test coming as president xi jinping welcomed brics leaders.
what is the mood in china? >> the chinese put out a statement saying they did not agree, didn't back, and did not support what the north koreans were doing. they said it was wrong actions, and they called for a resumption of dialogue. the chinese, it doesn't seem, are going to be changing their calculus in the short term. it is now assumed that china continues to see that the risks of a collapsed state, refugees flooding over, or a unified korea backed by the u.s. is still more of a risk than a nuclear-armed pyongyang. they have not said that officially but that seems to be the consensus. >> u.s. defense secretary jim mattis shot back at north korea's nuclear threat with a blunt threat. >> any threat to the united states or its territories, including guam or our allies, will be met with a massive military response, a response both effective and overwhelming. david: president trump recently
has tweeted "i am allowing japan and south korea to buy substantially increased amounts of highly sophisticated military equipment from the united states." is that going to help to address the problem? kevin: potentially, but i can tell you the administration is working with the united nation'' u.s. ambassador nikki haley on adding additional sanctions on north korea, but the question becomes whether or not china and russia will follow suit. ♪ >> after months of speculation and mixed messages, attorney general jeff sessions made it official. the trump administration is ending daca, deferred action for childhood arrivals. >> we cannot admit everyone who would like to come here. it is just that simple. >> president trump tweeting earlier, "congress get ready to do your job." >> everybody wants to be compassionate, but when it gets down to it, this is a matter of leadership in congress, and it has been absent on immigration. they have not been able to pass any immigration reform in the
past decade, and it is questionable in this partisan environment whether they can do it again. it will be very difficult. >> business has come out against this decision by president trump to let daca expire. facebook's mark zuckerberg wrote , it iscision to end daca wrong. " >> the sense in the business community is certainly in favor of daca and opposed to president trump's move. that includes of the chamber of commerce, a republican-aligned group. microsoft came out and said they've got a number of employees who are daca beneficiaries. they don't want to lose them. they want that to be protected. it remains to be seen how much further that is going to go. >> stocks tumbling today, relatively speaking, off by greater than 1% in the case of the dow. >> not massive losses, but big by recent standards, a sign of -- that some of the various headlines we are getting are
starting to have an impact. ♪ >> the vacancies at the federal reserve are mounting. stanley fischer is stepping down from the fed next month. he cited personal reasons in his letter of resignation to president donald trump. fischer has been a reliable ally of fed chair janet yellen. he has served three years as vice chair. >> to me, the takeaway of stanley fischer's resignation is twofold. one, it means one more vacancy to fill, which means there will be more influence in terms of the overall board, but two, it means the fomc is losing an important voice on the committee. they are losing somebody who has been important in terms of shaping the path of central-bank policy. >> you've still got janet yellen and dudley as the rest of the policy troika. short-term, those decisions will continue, but by february, you could see five new people on the fed, combined with the existing governors and the rotating seats, and the beginnings of a
real change. ♪ >> president trump and congressional leaders agreeing to an emergency aid package for harvey victims and a short-term debt ceiling deal. president trump: we have an extension, which will go out until december 15. that will include the debt ceiling, the cr's, and harvey. >> at this white house meeting, donald trump listens and decides, we will go with the democrats. so they do have a deal, but beware of december. when you are doing your christmas shopping, we could be in another crisis. >> nobody saw it coming. nobody quite knows what led to this. we know democrats came out with an idea this morning, schumer and pelosi, do this for three months, return to this in december before the holidays. this was a remarkable thumb in the eye of speaker ryan and leader mcconnell. this was not something they expected the president to do.
>> all eyes are on the ecb rate decision, dropping in just one moment. we have the deposit facility remaining unchanged at -40 basis points, the main refi rate coming in unchanged at 0%, and ecb saying that qe can be increased in size and duration if the outlook worsens. and they really want to see sustainability in their inflation path. >> draghi says the euro is a source of uncertainty. markets have been waiting to see if draghi would try to drop the -- talk the euro down after its rise this year. given the euro's reaction, does that tell us that draghi wasn't as forthcoming in his jawboning as he might have been? >> he didn't use some of the words he has used in the past, like "serious cause for concern," but he did point out it is a potential source for concern. it needs to be monitored, yet, the markets look to the other way and presumably focused more
on the fact that he said the asset purchase program will reach a decision next month. the bulk of it, he said. that tells you that tapering is at some point in the near future on its way. that is what the markets took, not his words. >> in my opinion, the euro is rising despite the ecb. if we take this at face value, then it is really broadly more of a dollar move. maybe what we have is a much broader dollar-weakening move. the euro is another manifestation of that. ♪ >> businesses and residents are bracing for the worst as hurricane irma braces towards -- barrels toward south florida. irma, which is now a category four storm, is forecast to hit florida directly by sunday. irma has spurred the biggest miami-dade county evacuation effort ever. >> it is pretty empty. i am positioned in the financial district downtown.
i have a big view of brookwood avenue. that is the financial district here. i looked out on the balcony, and there is pretty much no one here. a lot of businesses are shut. you are seeing people putting sandbags in front of entrances. i think people are waiting to see exactly how this storm proceeds and how the turn goes and where it hits, but it has the potential to disrupt transport infrastructure, tourism. there is a big banking and financial community. everyone is waiting to see how bad it is. there's been an official saying that parts of the state could be without power for days. people are hunkering down, positioning themselves. if you go to a supermarket, there is not a lot of bottled water. people have been preparing for days. everyone is going to wait and see how this thing hits. ♪
matt: still ahead, as we review the week on "bloomberg best," an exclusive perspective on politics and markets by michael dell. plus, picking up the pieces after harvey, just in time to brace for irma. up next, more of the week's top business headlines. china's central bank cracks down on bitcoin offerings. >> a lot of those cycles have been kind of very dodgy, not a real business behind them. matt: this is bloomberg. ♪
sector as united technologies snapped up rockwell collins for $423 billion. it's one of the biggest takeovers in aviation history. >> i think it makes a lot of strategic sense, clearly creating the world's largest aerospace supplier with $40 billion in revenue, which tops the ge's and honeywell's of the world. it creates a tremendous opportunity for scale. given the growth opportunity they see it commercial airspace. the financial sense is a question mark that has yet to be answered. 14 times ebitda is good value. granted, it was probably the most interesting effect in space given high-margin and cashless. -- cash flows. i think that is another question you are that remains to be seen, the financial aspect. ♪ mark: third time's the charm for schneider electric, the french company reaching an agreement to take control of british software maker of eva. >> the shareholders have not faltered on the deal, so it remains to be seen how that goes through.
it's an interesting deal structure. they are getting control of about 60% of the shares, and it's like a reverse takeover almost. the deal is definitely happening. mark: there's complexity of untangling the business. has a lot changed since the last two failures? >> aveva is arguing they have spun off some of their businesses. also, the markets have changed over the years. it has made it easier for them to do it this time around. let's see how shareholders worked on it, and let's see if they get the regulatory approvals in place. ♪ >> angela merkel has been put on the defensive in her only televised debate of the german election campaign. rival martin schulz accused the chancellor of taking her foot off the pedal over dieselgate, while the moderator suggested the government could have done more about the scandal. matt: compared to the debates we typically see in the u.s. or
that we saw over brexit or in the french elections, this one was very tame. the candidates were very polite. of course, the two parties work together in government, so there is not a lot of mudslinging that can go on. there was, however, the challenge to angela merkel. she says she is very angry about the diesel scandal, but she hasn't done much about it, and she doesn't seem to want to do much more about it than has already been done. ♪ >> china's central bank, pretty busy these days, saying initial coin offerings are illegal, asking all related fundraising activity to be halted. bitcoin tumbled on this news, although it also has leveled off. what does this ban cover, and what do you make of the timing? >> the ban is pretty comprehensive on all initial coin offerings. you can no longer raise money through them.
you cannot trade them, exchange them for the yuan. it is a pretty comprehensive ban, and if you already raised money, there's a good chance you are going to have to refund that money. a lot of those have been very dodgy. there's not a real business behind them, basically a lot of hype, and yet, they raise a lot of money. regulators stepped in to protect investors. this is why the timing is happening right now. ♪ >> nissan is planning to double annual deliveries of its new leaf. it has unveiled the first makeover since its introduction over seven years ago. it includes autonomous parking and increased driving range. >> we are now preparing for that. this is where we are. then the next step, five years
from 2020, 2025, there will be migration from the combustion engine in the major portfolio. ♪ mark: a deal bank, moving its hq to finland from sweden. this puts the nordic region's only systemically important bank inside of the european banking union and the eurozone. why the move? >> they have been threatening to do something like this for quite a while. >> the main reason is that sweden's government has simply plans to raise the fee that banks pay towards a resolution reserve. they also complain that the regulatory environment has been unpredictable. they want something more predictable and stable. they said the banking union was the place to go. >> yes, there are some savings we have highlighted on
resolution fees. there may be a capital impact. which we are not speculating yet, because i think it is too early. the key driver is we are creating one idea with one more way of operating, and we also need to be in an environment where we are regulated with our european peers. ♪ >> amazon is on the hunt for a second campus it is calling hq2, and it comes with a price tag of more than $5 billion. the seattle based giant is asking local and state governments to submit proposals. what do we know about this? why did amazon make this a public contest, and how many new hires will they be making? >> they will make 50,000 hires. it will take a while. the number they gave was 15-17 years. this is an almost two decades
project in bail today. it's pretty unusual when you -- this is an almost two decades project unveiled today. it's pretty unusual when you look at how amazon goes about building new offices and buying real estate. usually, they try to be quiet. they have gone so far as to say they have special tax structures to shield the fact they are looking at new places. this is going to be a massive new campus. they went so far as to call it another headquarters and saying it will be at the same level of their current seattle headquarters. jonathan: one of the most extensive cyber security breaches in history, equifax hit with a cyber attack that left almost half the u.s. population exposed. we have learned three executives sold shares in the days after they discovered the breach. >> one of the things that is almost certain, when this breach was announced, equifax tried to get all of their ducks in a row, but there is a lot of information that has not come out yet. including when the hack was discovered, we don't know if that means that the data left
the system, that they discovered malware on the system. there is a lot of stuff at play. given the selloff of shares by the executives, there's going to be a demand to know the timeline. companies don't like giving that information out. >> at the same time, we had civil lawsuits filed yesterday. how much more can we expect of that, and do you have any idea of the kind of money we are talking about? >> these incidents make consumers very angry, and when they get very angry, civil lawsuits follow. an attack like that shouldn't be able to get 143 million customer data. there ought to be a lot of a safeguards, and if that is not happening, that will go into a civil suit. ♪
♪ matt: welcome back to "bloomberg best." i am matt miller. this week, many ceos spoke out against the trump administration's decision to terminate daca after the president's response to violent protests last month led many business leaders to resign from and his advisory councils. you one ceo who did not step down was michael dell, the founder of dell technologies. he spoke exclusively with emily chang about how he sees his political role. >> i think it is important for us to have a voice and to be able to speak our minds, whether we agree or disagree. you know, fortunately, they usually listen to us. that is a good thing for us to be able to go and express our opinions. emily: you are on one of president trump's business councils before it dissolved following his remarks after the charlottesville protest.
i'm curious what was going through your mind as that was unfolding? >> as a jewish american, i was horrified to see people marching in the streets with nazi flags. how could you not be? look, we built our company as a place where anyone is welcome and anyone can succeed, and i think the hate and anger that exists in the world, whether it is in charlottesville or barcelona or any of the terrors around the world, this is not the answer to the challenges that exist. i was absolutely horrified to see that. emily: i'm sure you faced your own moral dilemma when you were wondering how you should respond.
why did you remain on the council when others were leaving? >> a lot of discussion among ceos. we were calling each other. what do we do? what is going to happen? how do we talk about this with our people in terms of, not specific to a council or anything like that, but how can we be a constructive force given this hate that is out there? as we were having that conversation, the president decided to dissolve the councils. we have a responsibility to our people and to the world. i think we can be a positive voice for change and progress. emily: when it comes to the policy issues, tax reform or immigration, what are you hoping more to see from this president?
>> we were very vocal in speaking up against the border adjustment tax. we thought that was a bad idea. for all of the folks who said, you shouldn't meet with the president -- well, i'm glad i met with the president. i told him i thought it was a really bad idea. it seems to have died. and whether or not that was because i spoke, probably because it was a really bad idea, we are going to continue to speak up no matter who is in charge. i think that is our responsibility. matt: coming up on "bloomberg best," more of the week's most compelling conversations, including interviews with top russian fiscal and monetary policy makers. plus, mark mobius says he is not pulling his money out of south korea, but he has some concern. >> if there is going to be a trade disagreement between south korea and the u.s., this is not good news. matt: this is bloomberg. ♪
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♪ >> we are starting now the real discussions with our british friends. we also note the positions on each side. these positions are not at this stage fully compatible, and that is quite normal because this discussion will be long-lasting. my friend is worried about the progress of the negotiations, but we still have some time to go. quite good deal of time to go. >> are you confident an agreement will be reached by the deadline? >> we have no choice. we have no alternative.
we know what the timetable is. we know brexit must be solved by the 29th of march, 2019. there needs to be a ratification before. we have a calendar of negotiations. we must first solve the problems that we need to solve before looking at the future of our relationship, which is obviously important. first things first. ♪ matt: that was the european union economic affairs official speaking with bloomberg television in italy last weekend. let's turn to asia, where rising tensions over north korea have
raised concerns for investors around the world. templeton emerging markets executive chairman mark mobius discussed what he is seeing in south korean markets. ♪ >> the market is beginning to falter in south korea, and nevertheless, i was just there two weeks ago, there isn't that much concern. life goes on. they are continuing to do business, and we are continuing to invest in the sme's. another thing with moon opening up with many more tons of money going into the consumer market, so i think it will be important going forward. >> although you talk about optimism and what president moon might bring forward, given the korea-u.s. fta, we are hearing from trump team might back out of it. is this time to reposition? >> of course, these are big concerns. if trade with the u.s. is faltering for south korea, this is not good news for south korea. they have a big trade surplus with the u.s. that is another reason why the market is now beginning to have second thoughts. previous to this, ok --
>> are you having second thoughts? >> yes, we are looking at this carefully. if there is going to be a true -- trade disagreement between south korea and the u.s., this is not good news. ♪ >> when you were in asian, what were clients saying about south korea? >> i was in japan when the missile went flying over the country, but they were less unsettled than i was, which was surprising. >> really? ok. >> there is anxiety. there is a lot of disruption geopolitically globally and people are anxious about it, but markets have been quite resilience, and there is not much people can do to it day to day except keep driving ahead. >> which raises the question, how do you quantify and price in this kind of geopolitical risk? if it is not impact is, when does it impact deals? >> i would say the markets, equity markets, credit markets, have been reasonably strong. there has been lots of political and geopolitical uncertainty that seems to be getting discounted, so it does not feel like it is priced into the
market. if one of these hopefully low probability circumstances comes, i think you will see a move in the markets that is more dramatic. matt: investors are watching russia. a key player in international, political, and economic negotiations. guy johnson attended this week's moscow i natural for and spoke -- moscow's financial forum and spoke with two senior policy officials. >> we never give our forecast. we never give estimates about what we will do with the policymaking. it will be up to the board of directors that will take a decision at a subsequent meeting. if we look at our track record in the past year, the board has taken different decisions. there have been cases when we have reduced it by 25, 50 basis points, and sometimes we have to
pause to take more time to give additional consideration to the matter, so it will be subject to analysis. we will look at the economy, inflation figures, inflation expectations, and all that will impact the decision. guy: given where we are with the patient, can we -- with inflation, can we rule out the fact he would leave interest rates on hold? can we rule out that we will see a 75 basis point cut? >> let me repeat once again, we do see room and potential for reduction. we will probably be debating, from somewhere between .25 to .50. guy: you talk about moving to this new phase. i'm curious how you perceive the inflation target. how symmetrical is the target? are you happier to be below it then you are to be above it?
--are you happier to be below it than you are to be above it? how much symmetry is around the target and how much tolerance do you have for being away from it, away from that kind of target? >> we always made it clear that 4% is our target, but that does not mean inflation will stay at 4% any given day, week, or month. there will be fluctuations. we are prepared for that. it will be going up and down around this 4%, and we think 4.4% or 3.3% is within the corridor for us. what is important is to understand the nature of the fluctuation and to come up with correct measures to respond to those. we need to understand which factors led to this fluctuation and to see whether they are sustainable, whether the trend
will persist or not. also, when when we first started inflation targeting, we studied very closely the expense of other countries and some of them decided to determine a corridor of acceptable fluctuations come up but we decided not to do that for a very clear reason. we got if we do that while inflation expectations are not anchored, people would expect inflation to stay at the higher end of the corridor. we did not want that to happen, so we need to act on a case-by-case basis. we need to do our analysis constantly because the economy is a living organism and we need to keep track of all the changes that are happening. ♪ >> we are now not planning any
significant changes in the ruble rate. there are certain influences on the ruble from the current situation and external economic decisions, but i am sure we will not see any significant changes in the ruble rate till the end of the year. my second point is that when elaborating our budget and our forecast, we are orienting towards i would say conservative oil prices, $40 per barrel for three years to come. this permits us, this price permits us to have some research -- reserves in our budget and fulfill our economic obligations. guy: 62% of the banking in russia is under state control for the russian banking system. would you like to see that number lower? >> of course we want to see more private banks, more competitive
private banks, in this area, but now public banks, they are a backbone for the russian economy. in this situation of volatility, they are really stable and the people and population in business have confidence towards these banks. for example, business owners can have their accounts and those banks. when the situation is unstable, these state and public banks are playing the stabilization role, but when the situation gets better and we will have more clear on restriction towards russia, sanctions and so forth, then of course we will be trying to -- sell these state shares and private banks. >> sanctions and everything else will be taken off before you start the process? >> speaking about the price of bankshares, especially those banks now under sanctions, they
♪ matt: you are watching "bloomberg best." i'm matt miller. very little calm between two storms this week. while the costs of hurricane harvey comes into focus, hurricane irma is close behind. let's look back at bloomberg analysis. >> two days after president donald trump asked for $8 billion in hurricane harvey aid, governor greg abbott said hurricane harvey could cost up to $180 billion, making it the most costly hurricane ever. to what extent has the energy industry in houston and surrounding areas been affected?
>> some have resumed normal operations, but we still have a fifth of refining capacity cut here. some of them coming back online has helped gasoline futures drop to the lowest point in a week. as far as natural gas, there has been production upset, some of that is coming back online. when a hurricane comes in, offshore platforms have to cut, evacuate. some of those are coming on line now, so there has been a hit to the u.s. energy sector. guy: florida is bracing for hurricane irma, the most powerful storm to form in the atlantic. this is less than two weeks after hurricane harvey, and hurricane jose in close pursuit. the so-called weathertight factor -- whether trifecta has
sent natural gas futures plunging. >> we have an impact on cotton and orange juice future prices, but the real action remains in gas. gas for october delivery was down $.10 overnight to just under three dollars. why is that happening? think back to hurricane harvey. that was a supply and demand story. when it comes to irma, that is expected to be a pure demand story. florida is a big importer of gas, but it does not necessarily impact supply, and all that is being interpreted as of bearish signal in the gas markets. >> take a look at this chart. this shows you what happens to overall national gdp. katrina, gdp went up after katrina hit. sandy, we were in a downtrend, and then went up again. you get a lot of money going into rebuild. the question this time is what does it do to consumer
confidence and where did they get the money? we have not had two back to back destructive hurricanes like this. it is going to throw a wrench into what is happening in washington if you have to pay $100 billion for harvey and $300 billion for florida, you are talking about real money in a city that does not want to spend it. >> let's talk about the impact on the fed. kaplan said harvey is significant, but we designed this structure to phase out and wind down the balance sheet to minimize the impact. he was not as sure when it came to rate hikes. irma could be bigger and of more consequence. >> it could, but i think he is right that shrinking the balance sheet and using rate cuts are totally separate now. i think that is right that the fed can start tracking its -- shrinking its balance sheet very slowly and gradually and in an incredibly predictable way in the face of two major natural disasters.
>> when you look at the company and its impact, it has been relatively minimal. in advance of the storm hitting south texas, we shuttered all -- shut down all our wells as a precautionary measure for employees. those are now back as a precautionary measure for employees. those are now back online. we have had to shut a few wells here and there. the net result is relatively small impact as of today. as things improve, the overall impact will be relatively limited in the industry. >> are you worried about crews getting back to work? there is already a shortage in the industry. does this exacerbate it? >> we use our own employees. our own employs were pumping those wells, and accordingly we feel like we are in good shape, but there is a bigger issue for the industry going forward as the rebuilding of all these areas is pursued, and how are you going to get the people to work in those arenas versus those who work in the oil field.
that is a bigger question for the patch. >> do you think there will be a labor battle between the rebuilding effort and oil and gas? >> it can happen. we are short of people in the permian basin. especially experienced people, so this could be an issue for the industry. >> what does it mean for your cost base? >> if labor costs go up, it affects us all. when the smoke clears and rebuilding occurs, what will be the pull on people, and how much do we have to pay them to keep them in the oil patch? >> people are grateful we made it through the storm. i called them warm, fuzzy feelings. those go away real quick if we don't get the debris picked up and get people moving towards getting back to their houses. matt: do you feel like you are getting what you need so far from the federal government?
>> absolutely. how big concern now is irma. that will draw resources away from us, and certainly our hearts are with those people in florida right now. >> are their neighborhoods that won't come back? are there places he will not build? >> there's no question we will have a large-scale buyout of harris county and houses in the region. we understand flooding. if houses have been flooded time after time and there is no mitigation project in line to help, we don't have any choice. we have to buy those houses out. >> what is the time line for that and how much do you need from the federal government for that? >> billions and billions of dollars. timeline is as soon as possible because there is no point allowing somebody to start rebuilding if they're going to be a buyout. we need to decide those buyouts sooner rather than later. >> short-term, you will have a spike in demand, but
longer-term, what it does for houston is that it speeds up the balance of supply and demand. most people thought it was going to be oversupply for the next year, 18 months, and then demand will pick up. today, that demand, that number is likely to get pushed way sooner than in the past. longer-term, we will require more housing in houston. that is what you ultimately need. it depends on how many units, multifamily and single-family, were destroyed by the flooding. ♪ >> we do see a lot of big asset price movements here. where are you go when you see something like first harvey, then hurricane irma, and three other hurricanes coming up from the atlantic. >> [laughter]
yeah, man, it is worse no doubt. i do think we will see what happens with the other ones coming, but as far as harvey is concerned, two important things. we will see unemployment claims numbers surging, a lot of that coming from texas. that will impact data on the economy. i think the market will look through that because we will have a ton of money coming here soon directed at rebuild efforts, like a fiscal stimulus. as you go into next year, that will be net-net positive. what we have done as of late since year end, and we have accelerated it since harvey, is we have had a significant economic policy stimulus in the form of a 10% plus lower dollar, and now 50-60 basis point drop in long-term yields, a powerful stimulus that we will continue to bring to the economy that i think will lead to an acceleration of growth in the united states despite the fact we have some negatives coming from the economic impact of these hurricanes, so the surprising impact of this could
be that the economic growth and inflation pressures intensify over the next 6-9 months as a result of the stimulus from the dollar and lower yields. mark: let's turn to the financial impact of hurricane irma as it heads towards florida, causing widespread destruction in the caribbean. barclays estimates insured losses in a worst-case scenario could reach $130 billion. is that your best guess? >> the number is broadly in line with the catastrophe numbers the insurance market uses. one with the valuation of an industry loss of $131 billion, and another with an industry loss of $134 billion. those are seen as worst-case scenarios. in some ways, the fertile and follows a route not dissimilar to hurricane andrew including a
is coming up to florida and jose next to it, and hurricane katia in mexico. there are about 30,000 functions on the bloomberg. we enjoy showing you are favorites on bloomberg television. maybe they will become your favorites, as well. here is another function you will find useful. quic , where you can get important context and insight into timely topics. here is a quick take from this week. ♪ >> with cancer killing 8 million people a year and counting, they -- we are constantly looking for new ways to fight the disease. immunotherapy holds promise. the term describes various therapies that harness the body's natural immune system to destroy cancer cells. advocates hope treatments will be more precise and effective
than chemotherapy and radiation. the market for cancer immunotherapy can reach $35 billion a year. here is the situation. immunotherapy for cancers is still very new. the current fascination began in 2012 when bristol-myers squibb presented positive data showing their drug extended the lives of patients. since then, the fda has approved immunotherapies. two of the most advanced are checkpoint blockers and car-t. checkpoint blockers unleashed to -- unleash the body's key cells to hunt down cancer. one of these checkpoint blockers is approved to treat advanced melanoma and other malignancies. in 2015, jimmy carter used it to successfully treat his melanoma, but only a fraction of patients have survived five years past the checkpoint blockers. car-t re-engineers the patient's t-cells to better equip it to fight cancer cells. a therapy by novartis was approved in the u.s., and another by kite pharma is expected to follow. demand is expected to be
overwhelming, and some worry doctors will make difficult choices on who gets treatment and who does not. while some immunotherapy drugs have demonstrated effectiveness, the medicines can have dangerous side effects. in 2016, one company halted a trial after a patient died. here is the argument. the immunotherapies are so new that no one knows how effective they will be with relapses. most of the time cancer patients are given immunotherapy drugs only after all options have been exhausted. despite the response, so far, they have only been shown to work against blood cancers. it is unclear if they will be effective against common tumors. another drawback is the cost. when drug costs $30,000 per injection in the united states, a treatment price tag of $120,000 per year, which is not always covered by insurance. there is also the lesson of history. cures for cancer have before
been predicted, only to disappoint. drugs which restrict blood flow to tumors would and cancer in two years, some of those drugs are still in use today. but the cure for cancer remains elusive. ♪ matt: that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thank you for watching. i am matt miller. this is bloomberg. ♪
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♪ david: what was the human genome project? dr. collins: the entire instruction book for an organism. david: was it harder to discover the human genome or be appointed by two presidents? dr. collins: both of those had certain challenges. david: how long do think people can keep increasing their longevity? what is the single greatest health challenge the united states faces today? dr. collins: more people died of opioid overdoses than car wrecks last year. it is just unbelievable. >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright. ♪